Caymus Equity Partners announced the sale of its portfolio company, Direct Marketing Solutions to Main Street Capital Corporation (NYSE:MAIN), with management maintaining a meaningful ownership stake in the business. The sale, which closed on February 13, 2018, marks the first full exit for Caymus Equity Partners.
Headquartered in Portland, Oregon, DMS is a leading provider of integrated, omni-channel direct marketing solutions to a diverse client base throughout the U.S. DMS serves a variety of end markets including banking, alternative lending, technology and telecom.
“During Caymus Equity’s five-year ownership of DMS, revenue grew by nearly 140 percent and EBITDA nearly doubled,” said Geoffrey Faux, Caymus Equity Managing Partner. “Investing alongside and partnering with an exceptional management team, led by Mike and Steve Sherman, we expanded DMS’ service offerings enabling the company to become increasingly important to their blue-chip customer base and solidified DMS as a leader in the direct marketing industry,” Mr. Faux continued. “DMS’ success underscored Caymus Equity’s ability to take smaller niche companies to the next level.”
“Our customers recognize our ability to utilize an integrated suite of omni-channel services to deliver a customized, cutting edge solution to their needs. Caymus Equity has been instrumental in supporting our growth and providing strategic guidance in support of our success. Caymus Equity has been a true partner to DMS and provided the necessary support and resources to expand the DMS platform. Caymus Equity’s guidance through strategy deployment and leading business practices proved invaluable in driving a shared vision for the company and we’re excited to continue building on a successful foundation,” commented Mike Sherman, CEO of DMS.
Ollie Maggard, Caymus Equity Managing Partner, commented “after several recapitalizations, the DMS sale represents the first full realization for Caymus Equity. This was a milestone for Caymus Equity and a terrific return for our limited partners. We thank Mike and Steve Sherman for their tremendous accomplishments and wish them continued success with their new partner.”
Duff & Phelps served as financial advisor and Ice Miller served as legal advisor to DMS. Caymus Equity partnered with Centerfield Capital Partners in the acquisition of DMS in September 2012.
Caymus Equity, with offices in Atlanta and New York, invests in profitable companies focused on business services, healthcare services, consumer and niche manufacturing with strong growth potential operating in the lower middle market. The professionals of Caymus Equity have over 100 years of investing and operating experience, including over 40 years in starting, acquiring, operating, growing and successfully exiting a variety of lower middle market businesses. The cornerstone of Caymus Equity’s investment philosophy is to partner with talented management teams to invest in companies that have reached an inflection point and provide value add operational support and capital to maximize growth opportunities. Caymus Equity Partners’ other holdings include Phoenix Aromas & Essential Oils, LLC, a leading global distributor of specialty flavor and fragrance ingredients; PureRED, a provider of a unique combination of marketing services that increase sales and customer engagement for world class retail, consumer packaged goods and business-to-business enterprises; FST Technical Services, Inc., a provider of a complete range of third party inspection and control services to semiconductor manufacturing and biopharmaceutical facilities; Hospitality Staffing Solutions, LLC, specializes in providing staffing solutions for housekeeping, as well as other hospitality services, including: food and beverage, janitorial, stewarding, laundry and grounds maintenance; Alpha Imaging employs a team of highly-skilled and long-tenured sales specialists and trusted field service engineers that sell and service medical imaging equipment focused principally on women’s health; and Excel Orthopedic Rehabilitation, P.A., a premier provider of sports and orthopedic physical therapy and rehabilitation services in northern New Jersey.
